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BASF SE
Quarterly Report • Nov 4, 2024
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Quarterly Report
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Quarterly Statement
Q3 2024
Q3
BASF Group
24
Quarterly Statement
Contents
Key Figures: BASF Group 4
Business Review 5
BASF Group 5
Significant Events 5
Results of Operations 7
Net Assets 9
Financial Position 9
Outlook 11
Chemicals 13
Materials 15
Industrial Solutions 17
Nutrition \& Care 19
Surface Technologies 21
Agricultural Solutions 23
Other 25
Regions 26
Selected Financial Data 27
Statement of Income 27
Balance Sheet 28
Statement of Cash Flows 29
Reconciliation Tables of Various Earnings Indicators 30
Selected Key Figures Excluding Precious and Base Metals 31
Further information can be found on our corporate website:
- BASF Reporting
- Investor Relations
- Media Relations
Symbols and captions:
- You can find more information in this report or online.
Q3 2024 - At a Glance
€15.7
billion
Sales
Q3 2023: €15.7 billion
€1.6
billion
EBITDA before special items
Q3 2023: €1.5 billion
€0.6
billion
Free cash flow
Q3 2023: €1.5 billion
EBITDA before special items for the BASF Group
Million €
Outlook for the 2024 business year unchanged
(Forecast published in the BASF Report 2023)
€8.0-€8.6 €0.1-€0.6 16.7-17.7
billion
EBITDA before special items
billion
Free cash flow
million metric tons
$\mathrm{CO}_{2}$ emissions
Key Figures
BASF Group
| Q3 | January-September | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | $+/-$ | 2024 | 2023 | ||
| Sales | million $€$ | 15,739 | 15,735 | 0.0\% | 49,403 | 53,031 |
| EBITDA before special items | million $€$ | 1,622 | 1,545 | 5.0\% | 6,291 | 6,354 |
| EBITDA | million $€$ | 1,277 | 1,363 | $-6.3 \%$ | 5,494 | 6,081 |
| EBITDA margin before special items | \% | 10.3 | 9.8 | - | 12.7 | 12.0 |
| Depreciation and amortization ${ }^{a}$ | million $€$ | 1,027 | 969 | 6.0\% | 3,039 | 2,846 |
| Income from operations (EBIT) | million $€$ | 250 | 394 | $-36.5 \%$ | 2,455 | 3,235 |
| Special items | million $€$ | $-385$ | $-181$ | $-112.0 \%$ | $-902$ | $-279$ |
| EBIT before special items | million $€$ | 635 | 575 | 10.3\% | 3,357 | 3,514 |
| Income before income taxes | million $€$ | 570 | $-38$ | . | 2,740 | 2,743 |
| Income after taxes | million $€$ | 343 | $-209$ | . | 2,223 | 1,950 |
| Net income | million $€$ | 287 | $-249$ | . | 2,084 | 1,812 |
| Earnings per share ${ }^{b}$ | $€$ | 0.32 | $-0.28$ | . | 2.33 | 2.03 |
| Adjusted earnings per share ${ }^{b}$ | $€$ | 0.32 | 0.32 | 0.8\% | 2.92 | 2.96 |
| Research and development expenses | million $€$ | 506 | 481 | 5.3\% | 1,520 | 1,534 |
| Personnel expenses | million $€$ | 2,777 | 2,592 | 7.1\% | 8,619 | 8,404 |
| Employees (September 30) | 112,078 | 112,085 | 0.0\% | 112,078 | 112,085 | |
| Assets (September 30) | million $€$ | 79,359 | 82,603 | $-3.9 \%$ | 79,359 | 82,603 |
| Investments including acquisitions ${ }^{c}$ | million $€$ | 1,568 | 1,316 | 19.1\% | 4,410 | 3,703 |
| Equity ratio (September 30) | \% | 45.4 | 48.8 | - | 45.4 | 48.8 |
| Net debt (September 30) | million $€$ | 19,704 | 18,872 | 4.4\% | 19,704 | 18,872 |
| Cash flows from operating activities | million $€$ | 2,052 | 2,686 | $-23.6 \%$ | 3,489 | 3,848 |
| Free cash flow | million $€$ | 569 | 1,465 | $-61.2 \%$ | $-417$ | 488 |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Due to the share buyback program terminated in February 2023, the weighted average number of outstanding shares in the period from January to September 2024 was 892,522,164 and 892,680,462 in the prior-year period.
c Additions to property, plant and equipment and intangible assets
Due to rounding, individual figures may not add up to the totals shown and percentages may not correspond exactly to the figures shown.
Business Review
BASF Group
Significant events
On July 10, 2024, BASF announced that it would cease production of the active ingredient glufosinateammonium (GA) at the Knapsack and Frankfurt am Main sites in Germany by the end of 2024. GA formulation in Frankfurt will end in 2025. Subsequently, both production facilities will be shut down. The active ingredient GA remains a key component of BASF's global herbicide portfolio and will be sourced from third-party suppliers in the future. This measure involves approximately 300 positions. The closure led to special charges in the low triple-digit million-euro range in the third quarter of 2024, which had a negative impact on the Agricultural Solutions segment's earnings.
On July 29, 2024, a fire occurred in the isophytol plant at the BASF site in Ludwigshafen, Germany. The incident caused damage to the plant, which has been shut down and is now in a safe condition. As a result, BASF SE declared with immediate effect and until further notice force majeure on deliveries of selected vitamin A, vitamin E and carotenoid products as well as certain aroma ingredients.
- For more information, see nutrition.basf.com
On August 29, 2024, BASF announced further plant closures implemented as part of the cost savings program for the Ludwigshafen site in Germany: The production plants for cyclododecanon and cyclopentanon will be shut down in the first half of 2025 and adipic acid production, which has already been significantly reduced since February 2023, will be discontinued in the course of 2025. These structural adjustments affect approximately 180 positions. BASF will support the employees in finding new employment opportunities within the BASF Group.
On September 3, 2024, the sale of Wintershall Dea's exploration and production (E\&P) business, excluding Russia-related activities, to Harbour Energy plc, London, United Kingdom, agreed in December 2023, was completed. The E\&P business consists of production and development assets, exploration rights and Wintershall Dea's carbon storage licenses. In exchange, Wintershall Dea shareholders - BASF (72.7\%) and LetterOne (27.3\%) - received a cash consideration totaling $\$ 1.76$ billion (BASF share: $\$ 1.28$ billion), including a purchase price adjustment, and new shares issued by Harbour equating to a total shareholding of $54.5 \%$ in the enlarged Harbour company (BASF share: 39.6\%). With this divestiture, BASF took the decisive step toward achieving final separation from the oil and gas business.
After Dr. Markus Kamieth took over as Chairman of the Board of Executive Directors in April 2024, BASF presented its new strategy during its Capital Markets Day on September 26 and 27, 2024. It aims for more speed in value creation, simplified internal organization, more streamlined and more differentiated steering of the BASF Group as well as driving forward the green transformation. The four strategic levers are Focus, Accelerate, Transform and Win.
In the future, BASF will differentiate between core businesses (Chemicals, Materials, Industrial Solutions and Nutrition \& Care) and standalone businesses (Environmental Catalyst and Metal Solutions, Battery Materials, Coatings and Agricultural Solutions) that serve distinct industries. As of January 1, 2025, Environmental Catalyst and Metal Solutions as well as Battery Materials will be reported as separate divisions in the Surface Technologies segment. Additionally, the chemical and refinery catalysts business, formerly part of the Catalysts division, will be reported as part of the Performance Chemicals division as of this date.
As part of its strategy communication, BASF also announced new financial targets and an updated dividend policy. EBITDA before special items is expected to be between €10 billion and €12 billion in 2028 in moderate to good economic conditions. For the cumulative free cash flow for 2025 to 2028, a figure of more than €12 billion is the target. The targeted return on capital employed (ROCE) for 2028 is around 10\%. BASF is committed to keeping the overall distribution to shareholders at prior-year levels through a combination of dividends and share buybacks. In this way, the company aims to distribute at least €12 billion to shareholders from 2025 to 2028. Specifically, the company will pay a dividend of at least €2.25 per share or around €2 billion each year. This will already apply to the dividend for the 2024 business year to be paid out in 2025. The aggregate dividend payment of around €8 billion in the fouryear period will be complemented by share buybacks, which are targeted from 2027 onward at the latest and expected to amount to around €4 billion.
Results of operations
At $€ 15,739$ million, sales were on a level with the prior-year period ( $€ 15,735$ million). Volume growth in almost all segments compared with the third quarter of 2023 had a positive impact on sales performance. Volumes increased in the core businesses - comprising the Chemicals, Materials, Industrial Solutions and Nutrition \& Care segments - as well as in Agricultural Solutions. Only Surface Technologies recorded a decline in volumes in the Catalysts division due to weak demand in the automotive market. Negative currency effects, mainly relating to the Argentine peso and Brazilian real, burdened sales. Lower prices in nearly all segments, particularly for precious and base metals in the Surface Technologies segment, also hindered sales performance.
Factors influencing sales
Compared with the prior-year quarter, the BASF Group's EBITDA before special items ${ }^{1}$ increased by $€ 77$ million to $€ 1,622$ million. This rise was primarily due to the considerable improvement in earnings in the core businesses, which mainly resulted from higher contribution margins. This was partially offset by a considerable earnings decline in the standalone businesses as well as in Other. In the Agricultural Solutions segment, this was mainly attributable to lower prices, negative currency effects and a positive one-off effect related to an insurance payment in the third quarter of 2023. EBITDA before special items in the Surface Technologies segment decreased, primarily due to lower precious metal prices and volumes. EBITDA before special items in Other also declined considerably, in particular as a result of the lower release of bonus provisions compared with the prior-year period. The EBITDA margin before special items was $10.3 \%$, following $9.8 \%$ in the prior-year quarter.
EBITDA ${ }^{1}$ amounted to $€ 1,277$ million, following $€ 1,363$ million in the prior-year period.
Sequential development of EBITDA before special items
[^0]
[^0]: 1 For an explanation of this indicator, see Results of Operations from page 61 onward of the BASF Report 2023 and the Reconciliation Tables on page 30 of this quarterly statement.
EBITDA included special items ${ }^{1}$ in the amount of -€345 million. Special charges resulted in particular in the Agricultural Solutions division from provisions in connection with the closure of the production plants for glufosinate-ammonium and the associated site closures.
At €250 million, EBIT ${ }^{2}$ was €144 million below the figure of the prior-year quarter. Depreciation and amortization ${ }^{3}$ amounted to $€ 1,027$ million (prior-year period: $€ 969$ million).
Net income from shareholdings increased by $€ 673$ million compared with the prior-year period. The growth was primarily due to special income of €398 million in connection with the transfer of Wintershall Dea assets to Harbour Energy plc. In the prior-year quarter, special items in the amount of -€291 million arose at Wintershall Dea.
The €79 million improvement in financial result to -€108 million was especially attributable to a better other financial result, due in part to higher interest income on income taxes and higher income from capitalized construction period interest.
Overall, income before income taxes amounted to $€ 570$ million, $€ 608$ million above the figure of the prior-year quarter. The tax rate of $39.9 \%$ resulted primarily from valuation allowances on deferred tax assets on tax loss carryforwards in Germany.
Income after taxes amounted to $€ 343$ million, an increase of $€ 552$ million compared with the third quarter of 2023. Noncontrolling interests were $€ 56$ million, which is $€ 17$ million above the figure of the prior-year period. This was mainly due to the higher earnings contribution from BASF TotalEnergies Petrochemicals LLC, Houston, Texas. Net income was €287 million (prior-year quarter: -€249 million).
Earnings per share amounted to $€ 0.32$ in the third quarter of 2024 (prior-year quarter: -€0.28). Earnings per share adjusted for special items and amortization of intangible assets ${ }^{4}$ also amounted to $€ 0.32$ (prior-year quarter: $€ 0.32$ ).
[^0]
[^0]: 1 Special items may arise from the integration of acquired businesses, from restructuring measures, gains or losses resulting from divestitures and sales of shareholdings, impairments and other expenses and income that arise outside of ordinary business activities.
2 The calculation of income from operations (EBIT) is shown in the Statement of Income on page 27 of this quarterly statement.
3 Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
4 For an explanation of this indicator, see Results of Operations from page 61 onward of the BASF Report 2023 and the Reconciliation Tables on page 30 of this quarterly statement.
Net assets
As of September 30, 2024, total assets amounted to $€ 79,359$ million, $€ 1,963$ million above the figure as of the end of 2023.
Noncurrent assets rose by $€ 1,717$ million to $€ 47,640$ million, primarily as a result of the $€ 1,597$ million increase in property, plant and equipment. This increase was mainly attributable to additions to property, plant and equipment which exceeded depreciation by $€ 1,797$ million. Currency effects had a slightly offsetting effect. Intangible assets decreased by $€ 510$ million, mainly due to amortization and currency effects. The $€ 538$ million rise in carrying amounts of integral investments accounted for using the equity method was mainly due to the addition of the shareholding in the Nordlicht 1 and 2 wind farm projects. The carrying amounts of non-integral investments accounted for using the equity method decreased by a total of $€ 380$ million. This was primarily because of the transfer of assets from Wintershall Dea to Harbour Energy plc, which was largely offset by the addition of the equity-accounted shareholding in Harbour Energy. The $€ 449$ million increase in other receivables and miscellaneous assets resulted mainly from higher defined benefit assets.
At $€ 31,718$ million, current assets were $€ 246$ million above the figure as of December 31, 2023. This rise was largely due to the $€ 419$ million increase in trade accounts receivable and the $€ 382$ million increase in inventories. By contrast, other receivables and miscellaneous assets decreased by $€ 297$ million, mainly because of lower precious metal trading positions.
Financial position
Equity amounted to $€ 36,045$ million, $€ 601$ million below the prior year-end figure. Retained earnings decreased by $€ 863$ million. This resulted from the payment of $€ 3,035$ million in dividends to the shareholders of BASF SE in the second quarter and net income of $€ 2,084$ million in the first nine months of 2024. The increase in other comprehensive income was mainly due to actuarial gains. Translation effects had an offsetting impact. At $45.4 \%$, the equity ratio was slightly below the prior year-end figure $(47.3 \%)$.
Noncurrent liabilities rose by $€ 1,447$ million to $€ 26,326$ million, mainly due to the $€ 1,956$ million increase in noncurrent financial indebtedness. This resulted particularly from the issue of new bonds with a carrying amount of around $€ 1.6$ billion, of which around $€ 1.3$ billion was accounted for by private placements, and extending the utilization of the credit line in China for the construction of the Verbund site in Zhanjiang, which accounted for around $€ 1.9$ billion. This was partially offset by the reclassification of four bonds with a total carrying amount of around $€ 1.4$ billion from noncurrent to current financial indebtedness. Slightly higher interest rates and income on plan assets led to a $€ 372$ million decrease in provisions for pensions and similar obligations. Additionally, deferred tax liabilities declined by $€ 255$ million compared with the figure as of December 31, 2023.
Current liabilities were $€ 1,117$ million above the 2023 year-end figure, primarily because of the $€ 1,084$ million increase in current financial indebtedness. The rise resulted mainly from the reclassification of the abovementioned bonds from noncurrent to current financial indebtedness. The scheduled repayment of a bond with a carrying amount of $€ 500$ million had an offsetting effect. Current provisions rose by $€ 799$ million, mainly due to higher sales provisions. Trade accounts payable declined by $€ 888$ million.
Compared with December 31, 2023, net debt ${ }^{1}$ increased by €3,114 million to €19,704 million, mainly due to increased financial indebtedness.
Net debt
| Million € | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Noncurrent financial indebtedness | 19,042 | 17,085 |
| + Current financial indebtedness | 3,267 | 2,182 |
| Financial indebtedness | 22,309 | 19,268 |
| - Marketable securities | 33 | 53 |
| - Cash and cash equivalents | 2,572 | 2,624 |
| Net debt | 19,704 | 16,590 |
Cash flows from operating activities amounted to €2,052 million in the third quarter of 2024, €633 million below the figure of the prior-year period. The €674 million higher reduction in trade accounts payable was the primary reason for this decrease. At the same time, cash released from inventories decreased by €339 million compared with the third quarter of 2023. By contrast, the rise in provisions resulted in €128 million being released in the third quarter of 2024, while cash in the amount of €179 million had been tied up in the prior-year quarter. Income after taxes adjusted for noncash effects decreased by €88 million compared with the prior-year quarter.
Cash flows from investing activities improved by €936 million to -€289 million in the third quarter of 2024. This was mainly due to the payment of €1,169 million in connection with the transfer of Wintershall Dea assets to Harbour Energy plc. By contrast, payments made for property, plant and equipment and intangible assets increased by €262 million to €1,484 million.
Cash flows from financing activities improved from -€1,667 million to -€1,392 million, primarily due to the €374 million decrease in net repayment of financial and similar liabilities, while the €79 million increase in dividend payments to noncontrolling interests had an offsetting effect.
Free cash flow ${ }^{1}$ amounted to €569 million in the third quarter of 2024, compared with €1,465 million in the prior-year period.
Q3 free cash flow
| Million € | 2024 | 2023 |
|---|---|---|
| Cash flows from operating activities | 2,052 | 2,686 |
| - Payments made for property, plant and equipment and intangible assets | 1,484 | 1,221 |
| Free cash flow | 569 | 1,465 |
BASF enjoys good credit ratings, especially compared with competitors in the chemical industry. Standard \& Poor's confirmed its rating of A-/A-2/outlook stable on April 18, 2024. Moody's rating of A3/ P-2/outlook stable also remained unchanged on April 17, 2024. Fitch confirmed its rating of A/F1/outlook stable on November 8, 2023.
[^0]
[^0]: 1 For an explanation of this indicator, see Financial Position from page 68 onward of the BASF Report 2023.
Outlook
According to the most recent estimates, global gross domestic product (GDP) grew by around 2.7\% in the third quarter of 2024 compared with the prior-year quarter.
In the European Union (E.U.), GDP grew by around 1\% compared with the prior-year quarter, which was considerably below the global average. According to current expectations, Germany is in a recession, as GDP is expected to have decreased for the second time quarter-on-quarter. Germany's economy is also estimated to have contracted compared with the third quarter of 2023. Italy's economy grew slightly compared with the previous year, however at a rate expected to be less than $1 \%$. Growth in France accelerated temporarily to more than $1 \%$, due in part to the positive economic stimulus generated by the Olympics. GDP growth in Spain was considerably higher at around 3\%.
According to current estimates, the U.S. economy's momentum in the third quarter slowed just slightly. At nearly $2.5 \%$, GDP growth is expected to be considerably stronger than in the E.U. However, this growth continued to be heavily driven by services; the industrial economy in the United States remained weak.
In China, GDP growth weakened to just under 5\% in the third quarter. Industry was a key driver of this economic development. From a demand perspective, domestic consumption nevertheless remained weak and growth was driven primarily by the solid export economy.
Based on preliminary, partly estimated data, global industrial production in the third quarter expanded by a total of $1.5 \%$ compared with the previous year. Developments varied by region: In the E.U., production in the manufacturing sector continued to decline, while in the United States it largely stagnated. By contrast, production in Asia's large emerging markets expanded. Production in the manufacturing sector is estimated to have increased by around 5\% in China and by some 3\% in India. Together, the two countries account for around $40 \%$ of value creation in the global manufacturing sector.
By contrast, production in the automotive industry declined sharply overall: According to recent forecasts, around 1.2 million fewer vehicles were produced in the third quarter of 2024 than in the third quarter of the previous year, which reflects a decrease of more than $5 \%$. This affected all major markets: In the E.U. and North America, production decreased by between 5\% and 6\%, in China by around 4\%, in Japan by nearly $6 \%$ and by about 8\% in South Korea.
In the consumer goods sector, demand for durables was particularly weak. By contrast, global food production increased moderately. According to recent estimates, production of care chemicals trended sideways.
Although long-term interest rates have now declined slightly, demand in the construction sector remained weak, especially for new construction in the private housing segment. In the E.U., construction activity declined. In the United States, real construction spending increased, while construction starts for private housing decreased by $6 \%$ compared with the prior-year quarter. In China, the crisis in the real estate market continued to have a negative impact on the construction sector.
The agricultural sector presented a mixed scenario: Lower prices for agricultural goods dampened demand for agrochemicals. Conversely, lower customer inventories in Europe and North America bolstered the market.
Global chemical production rose by around $4 \%$ in the third quarter of 2024 compared with the previous year. China drove global production with growth of around 6\% and widely varying growth rates for individual products and segments. Outside China, by contrast, production increased on average by only around $1.5 \%$. In the E.U., chemical production is estimated to have grown at an above-average rate of 3\%. By contrast, chemical production in the United States stagnated.
The oil price averaged $\$ 80$ per barrel (Brent crude) in the third quarter, below the level of the prior-year quarter ( $\$ 86$ per barrel). The fluctuation range was comparatively high with daily prices of around $\$ 70$ to around $\$ 90$ per barrel. While weak demand and Saudi Arabia's announced production increase dampened oil prices, the conflicts in the Middle East temporarily boosted oil prices.
For the full year 2024, BASF's assumptions for global chemical growth may prove to be too conservative. This will largely depend on whether chemical production in China can continue to grow at a high level. With respect to the industrial economy, however, leading economic indicators signal a global deceleration for the fourth quarter of 2024. Against this backdrop, BASF's assumptions remain unchanged:
- Growth in gross domestic product: $+2.3 \%$
- Growth in industrial production: $+2.2 \%$
- Growth in chemical production: $+2.7 \%$
- Average euro/dollar exchange rate of $\$ 1.10$ per euro
- Average annual oil price (Brent crude) of $\$ 80$ per barrel
The BASF Group's forecast for the 2024 business year published in the BASF Report 2023 also remains unchanged:
- EBITDA before special items of between $€ 8.0$ billion and $€ 8.6$ billion
- Free cash flow of between $€ 0.1$ billion and $€ 0.6$ billion
- $\mathrm{CO}_{2}$ emissions of between 16.7 million metric tons and 17.7 million metric tons
For the fourth quarter of 2024, there are risks from potential declines in prices and lower volume growth than expected. Opportunities may arise from a positive development in demand and margins.
The statements on opportunities and risks made in the BASF Report 2023 continue to apply overall. According to the company's assessment, neither existing individual risks nor the sum of individual risks pose a threat to the continued existence of the BASF Group.
- For more information on opportunities and risks, see page 173 onward of the BASF Report 2023
Chemicals
Q3 2024
At a glance
€342 million
EBITDA before special items
Q3 2023: €252 million
-€363 million
Segment cash flow
Q3 2023: €171 million
Sales in the Chemicals segment increased considerably compared with the prior-year quarter. This was attributable to strong sales growth in the Petrochemicals division. In contrast, sales in the Intermediates division declined slightly.
Factors influencing sales
| Chemicals | Petrochemicals | Intermediates | |
|---|---|---|---|
| Volumes | $10.1 \%$ | $12.3 \%$ | $4.5 \%$ |
| Prices | $2.5 \%$ | $6.0 \%$ | $-6.1 \%$ |
| Currencies | $-0.9 \%$ | $-1.2 \%$ | $-0.3 \%$ |
| Portfolio | - | - | - |
| Sales | $\mathbf{1 1 . 7 \%}$ | $\mathbf{1 7 . 2 \%}$ | $-2.0 \%$ |
Both divisions recorded volume growth, especially in Europe, resulting mainly from a slight improvement in demand as well as higher product availability following the steam cracker turnarounds in the prior-year period. Volumes in the Petrochemicals division rose in particular for steam cracker products and styrene monomers. Volumes in the Intermediates division increased primarily in the amines business as well as in the acids and polyalcohols business.
Higher prices overall supported the segment's sales performance. These were mainly driven by price increases in the propylene value chain compared with the weak prior-year quarter, as well as, among other things, raw materials price-related price increases for steam cracker products in the Petrochemicals division. Lower prices in all business areas of the Intermediates division, resulting from competition, had an offsetting effect, especially in the butanediol and derivatives business.
Negative currency effects, largely relating to the Brazilian real, reduced sales slightly.
The segment's EBITDA before special items ${ }^{1}$ grew considerably. Compared with the prior-year period, the Petrochemicals division increased earnings sharply, mainly due to a volume-related rise in the contribution margin for steam cracker products. Higher fixed costs, relating to the construction of the Verbund site in Zhanjiang, China, among other things, dampened earnings growth in the division. Although the Intermediates division also increased its contribution margin, EBITDA before special items declined considerably in this division. This decrease was attributable to higher fixed costs, mainly resulting from scheduled turnarounds.
[^0]
[^0]: 1 For EBITDA before special items and segment cash flow, "slight" means a change of $0.1 \%-10.0 \%$, while "considerable" and its synonyms are used for changes of $10.1 \%$ and higher. "At prior-year level" indicates no change ( $+/-0.0 \%$ ).
Segment cash flow ${ }^{1}$ in the Chemicals segment was considerably below the figure of the third quarter of 2023. This was mainly driven by higher capital expenditures, especially for the construction of the Verbund site in China. Furthermore, in the Intermediates division, inventories were built up in connection with preparations for scheduled turnarounds. The earnings increase in the Petrochemicals division was unable to compensate for these developments.
Segment data - Chemicals
| Million € | Q3 | January-September | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | +/- | 2024 | 2023 | +/- | |
| Sales to third parties | 2,714 | 2,430 | $11.7 \%$ | 8,317 | 7,942 | $4.7 \%$ |
| of which Petrochemicals | 2,031 | 1,733 | $17.2 \%$ | 6,181 | 5,653 | $9.3 \%$ |
| Intermediates | 683 | 697 | $-2.0 \%$ | 2,136 | 2,289 | $-6.6 \%$ |
| EBITDA before special items | 342 | 252 | $35.5 \%$ | 1,238 | 1,071 | $15.6 \%$ |
| EBITDA | 342 | 252 | $35.7 \%$ | 1,238 | 1,076 | $15.0 \%$ |
| EBITDA margin before special items | 12.6 | 10.4 | - | 14.9 | 13.5 | - |
| Depreciation and amortization ${ }^{a}$ | 210 | 206 | $2.0 \%$ | 623 | 578 | $7.9 \%$ |
| Income from operations (EBIT) | 132 | 46 | $186.5 \%$ | 615 | 499 | $23.3 \%$ |
| Special items | $-2$ | $-1$ | $-280.9 \%$ | $-3$ | 9 | |
| EBIT before special items | 134 | 47 | $187.7 \%$ | 617 | 490 | $26.0 \%$ |
| Investments including acquisitions ${ }^{b}$ | 810 | 616 | $31.6 \%$ | 2,278 | 1,672 | $36.2 \%$ |
| Segment cash flow | $-363$ | $-171$ | $-112.7 \%$ | $-1,325$ | $-327$ | $-305.7 \%$ |
| Assets (September 30) | 13,341 | 11,107 | $20.1 \%$ | 13,341 | 11,107 | $20.1 \%$ |
| Research and development expenses | 20 | 19 | $1.9 \%$ | 62 | 65 | $-4.5 \%$ |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Additions to property, plant and equipment and intangible assets
[^0]
[^0]: 1 For EBITDA before special items and segment cash flow, "slight" means a change of $0.1 \%-10.0 \%$, while "considerable" and its synonyms are used for changes of $10.1 \%$ and higher. "At prior-year level" indicates no change (+/-0.0\%).
Materials
Q3 2024
At a glance
€484 million
EBITDA before special items
Q3 2023: €360 million
€299 million
Segment cash flow
Q3 2023: €354 million
Sales in the Materials segment increased compared with the prior-year period. Sales growth in the Monomers division more than compensated for the mainly price-related decline in sales in the Performance Materials division.
Factors influencing sales
| Materials | Performance Materials |
Monomers | |
|---|---|---|---|
| Volumes | $3.5 \%$ | $0.2 \%$ | $7.2 \%$ |
| Prices | $-0.5 \%$ | $-2.0 \%$ | $1.2 \%$ |
| Currencies | $-1.0 \%$ | $-1.3 \%$ | $-0.6 \%$ |
| Portfolio | $-0.1 \%$ | $-0.3 \%$ | - |
| Sales | $\mathbf{1 . 9 \%}$ | $-3.3 \%$ | $\mathbf{7 . 8 \%}$ |
The segment's sales growth was mainly due to increased volumes in the Monomers division as a result of a slight improvement in demand, particularly in the MDI, propylene oxide and ammonia value chains. In the Performance Materials division, volumes remained stable.
Overall, prices declined slightly. This was mainly driven by lower price levels in the Performance Materials division, primarily in Europe and North America. Price increases in the Monomers division in nearly all regions and value chains partially compensated for this decrease.
Negative currency effects, mainly relating to the Brazilian real, dampened sales performance slightly.
The segment's EBITDA before special items was considerably above the level of the prior-year quarter. Earnings in the Monomers division increased significantly due to higher volumes and prices. The growth was contrasted by a slight decline in EBITDA before special items in the Performance Materials division, mainly because of higher fixed costs.
The Materials segment's EBITDA included special charges totaling €34 million, which were primarily expenses related to adaptations to the production structure at the Verbund site in Ludwigshafen, Germany.
Compared with the third quarter of 2023, segment cash flow declined considerably in the Materials segment. This resulted primarily from cash tied up in inventories in the Monomers division as well as a lower reduction in inventories in the Performance Materials division. By contrast, increased earnings in the Monomers division as well as a higher release of cash from trade accounts receivable in both divisions had a positive impact on the segment's cash flow development.
| Million € | Q3 | January-September | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | $+/-$ | 2024 | 2023 | $+/-$ | |
| Sales to third parties | 3,413 | 3,349 | $1.9 \%$ | 10,270 | 10,801 | $-4.9 \%$ |
| of which Performance Materials | 1,706 | 1,765 | $-3.3 \%$ | 5,205 | 5,558 | $-6.4 \%$ |
| Monomers | 1,707 | 1,584 | $7.8 \%$ | 5,065 | 5,243 | $-3.4 \%$ |
| EBITDA before special items | 484 | 360 | $34.5 \%$ | 1,440 | 1,270 | $13.4 \%$ |
| EBITDA | 450 | 310 | $45.0 \%$ | 1,428 | 1,186 | $20.4 \%$ |
| EBITDA margin before special items | 14.2 | 10.8 | - | 14.0 | 11.8 | - |
| Depreciation and amortization ${ }^{a}$ | 205 | 203 | $1.0 \%$ | 616 | 604 | $1.9 \%$ |
| Income from operations (EBIT) | 245 | 108 | $127.6 \%$ | 812 | 582 | $39.5 \%$ |
| Special items | $-37$ | $-50$ | $25.0 \%$ | $-22$ | $-83$ | $73.7 \%$ |
| EBIT before special items | 283 | 158 | $79.4 \%$ | 834 | 665 | $25.4 \%$ |
| Investments including acquisitions ${ }^{b}$ | 222 | 224 | $-0.8 \%$ | 734 | 644 | $14.0 \%$ |
| Segment cash flow | 299 | 354 | $-15.6 \%$ | 520 | 1,037 | $-49.8 \%$ |
| Assets (September 30) | 10,126 | 10,363 | $-2.3 \%$ | 10,126 | 10,363 | $-2.3 \%$ |
| Research and development expenses | 43 | 42 | $2.6 \%$ | 134 | 136 | $-1.3 \%$ |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Additions to property, plant and equipment and intangible assets
Industrial Solutions
Q3 2024
At a glance
€301 million
EBITDA before special items
Q3 2023: €207 million
€356 million
Segment cash flow
Q3 2023: €416 million
Sales in the Industrial Solutions segment rose in both operating divisions compared with the prior-year period.
Factors influencing sales
| Industrial Solutions |
Dispersions \& Resins |
Performance Chemicals |
|
|---|---|---|---|
| Volumes | $9.1 \%$ | $8.3 \%$ | $10.3 \%$ |
| Prices | $-0.9 \%$ | $0.7 \%$ | $-3.5 \%$ |
| Currencies | $-0.8 \%$ | $-0.4 \%$ | $-1.4 \%$ |
| Portfolio | $\sim$ | $\sim$ | $\sim$ |
| Sales | $\mathbf{7 . 4 \%}$ | $\mathbf{8 . 7 \%}$ | $\mathbf{5 . 4 \%}$ |
The positive sales performance was mainly driven by higher volumes in all regions and nearly all business areas due to heightened demand.
Lower prices in the Performance Chemicals division, which enabled it to defend its market share, had a slightly offsetting effect. The slight price increases resulting from the passing on of higher raw materials prices in the Dispersions \& Resins division partially offset this.
Currency effects dampened sales slightly.
Compared with the prior-year quarter, both divisions considerably increased EBITDA before special items. This rise was predominantly attributable to higher contribution margins, largely as a result of volume growth. In line with earnings performance, the segment's EBITDA margin before special items also improved from $10.6 \%$ in the prior-year period to $14.4 \%$.
Segment cash flow declined considerably compared with the third quarter of 2023, mainly due to cash tied up in inventories. Higher earnings in both divisions and an increased release of cash from trade accounts receivable were unable to compensate for this.
Segment data - Industrial Solutions
| Million € | Q3 | January-September | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | $+/-$ | 2024 | 2023 | $+/-$ | |
| Sales to third parties | 2,092 | 1,948 | $7.4 \%$ | 6,296 | 6,141 | $2.5 \%$ |
| of which Dispersions \& Resins | 1,305 | 1,201 | $8.7 \%$ | 3,934 | 3,776 | $4.2 \%$ |
| Performance Chemicals | 787 | 747 | $5.4 \%$ | 2,362 | 2,365 | $-0.1 \%$ |
| EBITDA before special items | 301 | 207 | $45.3 \%$ | 953 | 715 | $33.3 \%$ |
| EBITDA | 293 | 196 | $49.5 \%$ | 943 | 766 | $23.2 \%$ |
| EBITDA margin before special items | 14.4 | 10.6 | - | 15.1 | 11.6 | - |
| Depreciation and amortization ${ }^{a}$ | 86 | 84 | $2.6 \%$ | 255 | 261 | $-2.2 \%$ |
| Income from operations (EBIT) | 208 | 113 | $84.3 \%$ | 688 | 505 | $36.4 \%$ |
| Special items | $-8$ | $-10$ | $19.1 \%$ | $-10$ | 42 | |
| EBIT before special items | 215 | 122 | $76.1 \%$ | 698 | 463 | $50.8 \%$ |
| Investments including acquisitions ${ }^{b}$ | 78 | 65 | $19.4 \%$ | 182 | 187 | $-3.0 \%$ |
| Segment cash flow | 356 | 416 | $-14.4 \%$ | 565 | 978 | $-42.2 \%$ |
| Assets (September 30) | 5,753 | 5,798 | $-0.8 \%$ | 5,753 | 5,798 | $-0.8 \%$ |
| Research and development expenses | 36 | 34 | $6.1 \%$ | 107 | 115 | $-6.2 \%$ |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Additions to property, plant and equipment and intangible assets
Nutrition \& Care
Q3 2024
At a glance
€201 million
EBITDA before special items
Q3 2023: €104 million
€52 million
Segment cash flow
Q3 2023: €157 million
Sales in the Nutrition \& Care segment improved compared with the prior-year period. The sales growth in the Care Chemicals division more than offset the decline in the Nutrition \& Health division.
Factors influencing sales
| Nutrition \& Care |
Care Chemicals |
Nutrition \& Health | |
|---|---|---|---|
| Volumes | $6.0 \%$ | $9.1 \%$ | $-0.7 \%$ |
| Prices | $-2.3 \%$ | $-2.7 \%$ | $-1.4 \%$ |
| Currencies | $-2.2 \%$ | $-2.3 \%$ | $-1.8 \%$ |
| Portfolio | $-0.2 \%$ | - | $-0.7 \%$ |
| Sales | $1.3 \%$ | $4.1 \%$ | $-4.7 \%$ |
The Care Chemicals division raised volumes in all business areas. Volume development in the Nutrition \& Health division was slightly negative overall, mainly due to lower volumes in the nutrition business in connection with the fire at the isophytol plant at the end of July 2024. The strong volume growth of the aroma business was unable to compensate for this.
Prices decreased in nearly all business areas of the segment, primarily as a result of competition.
Negative currency effects relating to the Argentine peso, the Brazilian real and the Turkish lira dampened sales slightly.
EBITDA before special items improved considerably in both divisions. In the Care Chemicals division, the increase was mainly a result of a volume-related rise in the contribution margin and lower variable costs, while earnings in the Nutrition \& Health division improved, primarily due to lower variable costs. Higher fixed costs burdened earnings performance in both divisions. Fixed costs in the Care Chemicals division increased, mainly due to positive one-off effects in the prior-year quarter. The Nutrition \& Health division recorded a rise in fixed costs due largely to the abovementioned plant fire. The segment's EBITDA margin before special items increased to $11.7 \%$ (prior-year quarter: $6.2 \%$ ).
Segment cash flow decreased considerably. Overall, the Nutrition \& Health division recorded negative cash flow, particularly as a result of higher expenditures for the investments in the aroma business in Zhanjiang, China, and Ludwigshafen, Germany. In addition, the reduction in inventories was not as strong as in the prior-year quarter. Higher earnings and an increased release of cash from trade accounts receivable improved cash flow. The Care Chemicals division recorded positive cash flow overall, although it was considerably below the figure of the prior-year period. Here, the earnings increase was unable to compensate for a considerably lower reduction in inventories.
Segment data - Nutrition \& Care
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Additions to property, plant and equipment and intangible assets
Surface Technologies
At a glance
€341 million
EBITDA before special items
Q3 2023: €404 million
€232 million
Segment cash flow
Q3 2023: €307 million
The Surface Technologies segment recorded a decrease in sales compared with the prior-year quarter, which mainly resulted from the decline in the Catalysts division.
Factors influencing sales
| Surface Technologies |
Catalysts | Coatings | |
|---|---|---|---|
| Volumes | $-6.7 \%$ | $-10.0 \%$ | $1.5 \%$ |
| Prices | $-10.6 \%$ | $-14.6 \%$ | $-0.7 \%$ |
| Currencies | $-2.0 \%$ | $-0.7 \%$ | $-5.2 \%$ |
| Portfolio | $-0.1 \%$ | $-0.1 \%$ | - |
| Sales | $-19.4 \%$ | $-25.4 \%$ | $-4.4 \%$ |
Lower precious and base metal prices ${ }^{1}$ in the Catalysts division were the main reason for the segment's sales performance. The Coatings division also recorded lower prices, mainly in the automotive refinish coatings business.
Furthermore, lower volumes resulting from the weak automotive market contributed to the decline in sales. In the Catalysts division, this especially affected the mobile emissions catalysts business. In contrast, volumes increased in the Coatings division, mainly in the decorative paints business.
Negative currency effects arose from the Brazilian real and the Argentine peso, which primarily had an impact on the Coatings division. Portfolio effects in the Catalysts division resulted from the divestiture of the production site in De Meern, Netherlands, as of August 31, 2023.
EBITDA before special items declined considerably in both divisions. Compared with the prior-year quarter, EBITDA before special items in the Catalysts division decreased, due primarily to the sharp decline in precious metal prices as well as lower sales volumes. In the Coatings division, earnings decreased particularly due to the inflation-related rise in fixed costs. The Surface Technologies segment's EBITDA margin before special items was 10.9\%, following 10.4\% in the third quarter of 2023.
Special items in EBITDA were -€36 million in the third quarter of 2024, which mainly resulted from special charges in connection with the conversion of the ERP system for a differentiated steering of the business.
[^0]
[^0]: 1 Sales, factors influencing sales, EBITDA before special items and the EBITDA margin before special items excluding precious and base metals for the BASF Group and for the Surface Technologies segment are presented under Selected Key Figures Excluding Precious and Base Metals on page 31 of this quarterly statement.
In line with sales and earnings performance, segment cash flow also declined considerably compared with the prior-year quarter. Cash flow in the Coatings division was mainly burdened by the decline in earnings and higher capital expenditures. In the Catalysts division, cash flow decreased primarily as a result of a lower reduction in inventories as well as earnings performance. Cash released from trade accounts receivable as well as lower capital expenditures had a positive impact on the division's cash flow development.
Segment data - Surface Technologies
| Million € | Q3 | January-September | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | $+/-$ | 2024 | 2023 | $+/-$ | |
| Sales to third parties | 3,132 | 3,887 | $-19.4 \%$ | 9,714 | 12,691 | $-23.5 \%$ |
| of which Catalysts | 2,074 | 2,781 | $-25.4 \%$ | 6,552 | 9,419 | $-30.4 \%$ |
| Coatings | 1,057 | 1,106 | $-4.4 \%$ | 3,162 | 3,272 | $-3.4 \%$ |
| EBITDA before special items | 341 | 404 | $-15.5 \%$ | 1,063 | 1,180 | $-9.9 \%$ |
| EBITDA | 306 | 341 | $-10.5 \%$ | 952 | 1,045 | $-8.8 \%$ |
| EBITDA margin before special items | 10.9 | 10.4 | - | 10.9 | 9.3 | - |
| Depreciation and amortization ${ }^{a}$ | 178 | 148 | 20.3\% | 471 | 431 | 9.4\% |
| Income from operations (EBIT) | 128 | 194 | $-33.9 \%$ | 481 | 614 | $-21.6 \%$ |
| Special items | $-70$ | $-63$ | $-11.8 \%$ | $-146$ | $-137$ | $-6.5 \%$ |
| EBIT before special items | 199 | 257 | $-22.7 \%$ | 627 | 750 | $-16.5 \%$ |
| Investments including acquisitions ${ }^{b}$ | 127 | 131 | $-2.9 \%$ | 330 | 363 | $-9.2 \%$ |
| Segment cash flow | 232 | 307 | $-24.4 \%$ | 714 | 1,041 | $-31.4 \%$ |
| Assets (September 30) | 12,104 | 13,479 | $-10.2 \%$ | 12,104 | 13,479 | $-10.2 \%$ |
| Research and development expenses | 77 | 67 | $15.5 \%$ | 241 | 226 | $7.0 \%$ |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Additions to property, plant and equipment and intangible assets
Agricultural Solutions
Q3 2024
At a glance
€49 million
EBITDA before special items
Q3 2023: €225 million
€612 million
Segment cash flow
Q3 2023: €853 million
Sales in the Agricultural Solutions segment rose in the third quarter of 2024 due to higher volumes in all regions. This performance was partly due to the weak baseline in the prior-year quarter, in which the market environment was characterized by cautious purchasing behavior. The volume growth more than compensated for negative currency effects and lower prices.
Factors influencing sales
| Volumes | $24.9 \%$ |
|---|---|
| Prices | $-6.2 \%$ |
| Currencies | $-12.7 \%$ |
| Portfolio | - |
| Sales | $6.0 \%$ |
Sales in Europe increased due to higher prices and volumes, particularly in the fungicides business. This more than compensated for lower volumes in the herbicides business and slightly negative currency effects, especially relating to the Turkish lira.
In North America, sales increased considerably due to higher volumes, primarily in seeds and traits. Negative currency effects, mainly relating to the Mexican peso, had a dampening impact.
In Asia, sales were above the prior-year quarter due to higher volumes, predominantly in insecticides and fungicides. Lower prices and negative currency effects, mainly from the Indian rupee, reduced the positive sales performance.
Sales in South America, Africa and the Middle East declined due to negative currency effects, mainly from the Argentine peso and the Brazilian real, as well as lower prices. Higher volumes in almost all indications were unable to fully offset this.
Compared with the prior-year quarter, EBITDA before special items and the EBITDA margin before special items declined considerably. This was mainly attributable to lower prices, negative currency effects and a positive one-off effect from an insurance payment in the third quarter of 2023.
EBITDA in the third quarter of 2024 included special charges totaling €239 million. These related in particular to provisions, which were recognized due to the announced closure of the production and formulation plants for glufosinate-ammonium in Knapsack and Frankfurt am Main, Germany.
Segment cash flow was considerably below the level of the prior-year period, mainly due to lower EBITDA as well as the lower reduction in receivables. A reduction in inventories, compared with an inventories buildup in the prior-year period, was unable to fully compensate for this.
Segment data - Agricultural Solutions
| Million € | Q3 | January-September | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | $+/-$ | 2024 | 2023 | $+/-$ | |
| Sales to third parties | 1,849 | 1,744 | $6.0 \%$ | 7,264 | 7,865 | $-7.6 \%$ |
| EBITDA before special items | 49 | 225 | $-78.4 \%$ | 1,544 | 2,049 | $-24.6 \%$ |
| EBITDA | $-190$ | 213 | 1,291 | 2,034 | $-36.5 \%$ | |
| EBITDA margin before special items \% | 2.6 | 12.9 | - | 21.3 | 26.1 | - |
| Depreciation and amortization ${ }^{a}$ | 170 | 172 | $-1.1 \%$ | 504 | 524 | $-3.8 \%$ |
| Income from operations (EBIT) | $-360$ | 41 | 788 | 1,511 | $-47.9 \%$ | |
| Special items | $-239$ | $-12$ | $-256$ | $-15$ | ||
| EBIT before special items | $-121$ | 53 | 1,044 | 1,526 | $-31.6 \%$ | |
| Investments including acquisitions ${ }^{b}$ | 82 | 72 | $13.3 \%$ | 201 | 234 | $-14.2 \%$ |
| Segment cash flow | 612 | 853 | $-28.2 \%$ | 902 | 1,174 | $-23.1 \%$ |
| Assets (September 30) | 15,748 | 17,427 | $-9.6 \%$ | 15,748 | 17,427 | $-9.6 \%$ |
| Research and development expenses | 226 | 208 | $8.6 \%$ | 677 | 655 | $3.4 \%$ |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Additions to property, plant and equipment and intangible assets
Other
Q3 2024
At a glance
€829 million
Sales to third parties
Q3 2023: €689 million
-€96 million
EBITDA before special items
Q3 2023: -€8 million
Compared with the prior-year quarter, Other improved sales due to growth in commodity trading.
EBITDA before special items in Other was considerably below the figure of the prior-year period. This resulted mainly from the lower release of bonus provisions compared with the prior-year quarter.
EBITDA in Other included special items amounting to -€27 million in the third quarter of 2024. In particular, it included special charges related to the ongoing cost savings programs.
Financial data - Other
| Million $€$ | Q3 | January-September | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | $+/-$ | 2024 | 2023 | $+/-$ | |
| Sales to third parties | 829 | 689 | 20.2\% | 2,436 | 2,365 | 3.0\% |
| EBITDA before special items | $-96$ | $-8$ | $-594$ | $-367$ | $-62.0 \%$ | |
| of which costs for cross-divisional corporate research | $-56$ | $-64$ | $12.1 \%$ | $-159$ | $-189$ | $16.1 \%$ |
| costs of corporate headquarters | $-55$ | $-54$ | $-2.0 \%$ | $-173$ | $-173$ | $0.3 \%$ |
| other businesses | 41 | 29 | $38.7 \%$ | 111 | 89 | $25.4 \%$ |
| foreign currency results, hedging and other measurement effects | $-26$ | $-3$ | $-668.5 \%$ | $-65$ | $-29$ | $-124.8 \%$ |
| miscellaneous income and expenses | 0 | 84 | $-100.0 \%$ | $-309$ | $-64$ | $-383.4 \%$ |
| EBITDA | $-124$ | $-45$ | $-173.7 \%$ | $-1,014$ | $-479$ | $-111.5 \%$ |
| Depreciation and amortization ${ }^{a}$ | 36 | 38 | $-6.7 \%$ | 121 | 113 | 7.0\% |
| Income from operations (EBIT) | $-159$ | $-83$ | $-91.2 \%$ | $-1,135$ | $-592$ | $-91.6 \%$ |
| Special items | $-27$ | $-37$ | $29.2 \%$ | $-429$ | $-113$ | $-281.2 \%$ |
| EBIT before special items | $-133$ | $-46$ | $-189.3 \%$ | $-705$ | $-480$ | $-47.1 \%$ |
| Investments including acquisitions ${ }^{\text {b }}$ | 43 | 35 | $22.4 \%$ | 153 | 106 | $43.4 \%$ |
| Assets (September 30) ${ }^{\text {c }}$ | 14,611 | 16,726 | $-12.6 \%$ | 14,611 | 16,726 | $-12.6 \%$ |
| Research and development expenses | 66 | 76 | $-12.9 \%$ | 187 | 225 | $-17.1 \%$ |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Additions to property, plant and equipment and intangible assets
c Includes assets of businesses recognized under Other and reconciliation to assets of the BASF Group
Regions
Q3 2024
Companies headquartered in Europe recorded a $4.6 \%$ increase in sales to $€ 6,211$ million compared with the prior-year quarter. This could be achieved by increasing sales volumes in nearly all segments, especially Chemicals. While the Agricultural Solutions and Chemicals segments increased prices, all other segments recorded lower prices. Currency effects had a negative effect on all segments.
The North America region recorded sales growth of $0.2 \%$ to $€ 3,945$ million. In local currency terms, sales grew by $1.1 \%$. The considerable increase in sales volumes in the Agricultural Solutions segment contributed substantially to the region's increase in sales. Higher prices in the Chemicals segment were unable to compensate for the lower prices in the other segments, especially in Surface Technologies. Currency effects negatively affected all segments.
In the Asia Pacific region, sales fell by $5.1 \%$ in euros to $€ 4,033$ million and by $4.2 \%$ in local currency terms. At $€ 2,162$ million, sales in Greater China were $10.5 \%$ below the figure of the prior-year period. The decline in sales in this region was mainly driven by negative price effects in nearly all segments, especially the precious metal prices of the Surface Technologies segment. Currency effects, primarily from the Chinese renminbi, had a negative effect on all segments. The slight increase in sales volumes in the region was attributable to the volume growth of Industrial Solutions, Materials, Nutrition \& Care and Agricultural Solutions.
Compared with the prior-year period, sales at companies located in the South America, Africa, Middle East region declined to $€ 1,550$ million; this corresponds to a decrease of $3.4 \%$ in euros. Conversely, in local currency terms, sales rose by $16.1 \%$. This sales performance was driven by the strong currency effects of the Argentine peso and Brazilian real, which affected all segments. The overall lower prices, particularly in the Agricultural Solutions segment, contributed to the decline in sales. The sharp increase in volumes in all segments had an offsetting effect.
Regions
| Million $€$ | Sales by location of company | Sales by location of customer | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | +/- | 2024 | 2023 | +/- | |
| Europe | 6,211 | 5,941 | $4.6 \%$ | 5,842 | 5,740 | $1.8 \%$ |
| of which Germany | 2,717 | 2,547 | $6.7 \%$ | 1,562 | 1,564 | $-0.1 \%$ |
| North America | 3,945 | 3,939 | $0.2 \%$ | 3,863 | 3,752 | $3.0 \%$ |
| Asia Pacific | 4,033 | 4,250 | $-5.1 \%$ | 4,102 | 4,290 | $-4.4 \%$ |
| of which Greater China | 2,162 | 2,415 | $-10.5 \%$ | 2,151 | 2,397 | $-10.2 \%$ |
| South America, Africa, Middle East | 1,550 | 1,604 | $-3.4 \%$ | 1,932 | 1,953 | $-1.0 \%$ |
| BASF Group | 15,739 | 15,735 | $0.0 \%$ | 15,739 | 15,735 | $0.0 \%$ |
| January-September | ||||||
| Europe | 20,318 | 21,532 | $-5.6 \%$ | 19,303 | 20,507 | $-5.9 \%$ |
| of which Germany | 8,495 | 8,810 | $-3.6 \%$ | 4,798 | 5,305 | $-9.6 \%$ |
| North America | 13,686 | 14,777 | $-7.4 \%$ | 13,386 | 14,563 | $-8.1 \%$ |
| Asia Pacific | 11,928 | 13,056 | $-8.6 \%$ | 12,208 | 13,231 | $-7.7 \%$ |
| of which Greater China | 6,540 | 7,128 | $-8.2 \%$ | 6,490 | 7,059 | $-8.1 \%$ |
| South America, Africa, Middle East | 3,471 | 3,666 | $-5.3 \%$ | 4,506 | 4,730 | $-4.7 \%$ |
| BASF Group | 49,403 | 53,031 | $-6.8 \%$ | 49,403 | 53,031 | $-6.8 \%$ |
Selected Financial Data
Statement of Income
| Million € | Q3 | January-September | ||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Sales revenue | 15,739 | 15,735 | 49,403 | 53,031 |
| Cost of sales | $-11,912$ | $-12,127$ | $-36,436$ | $-40,033$ |
| Gross profit on sales | 3,827 | 3,608 | 12,967 | 12,998 |
| Selling expenses | $-2,172$ | $-2,135$ | $-6,547$ | $-6,560$ |
| General administrative expenses | $-347$ | $-371$ | $-1,093$ | $-1,119$ |
| Research and development expenses | $-506$ | $-481$ | $-1,520$ | $-1,534$ |
| Other operating income | 305 | 497 | 1,084 | 1,431 |
| Other operating expenses | $-885$ | $-769$ | $-2,556$ | $-2,130$ |
| Income from integral companies accounted for using the equity method | 27 | 46 | 120 | 148 |
| Income from operations (EBIT) | 250 | 394 | 2,455 | 3,235 |
| Income from non-integral companies accounted for using the equity method | 440 | $-251$ | 697 | 24 |
| Income from other shareholdings | 16 | 25 | 60 | 46 |
| Expenses from other shareholdings | $-28$ | $-19$ | $-60$ | $-40$ |
| Net income from shareholdings | 428 | $-245$ | 697 | 30 |
| Interest income | 80 | 72 | 264 | 198 |
| Interest expenses | $-236$ | $-239$ | $-694$ | $-644$ |
| Interest result | $-156$ | $-166$ | $-430$ | $-445$ |
| Other financial income | 93 | 36 | 171 | 93 |
| Other financial expenses | $-44$ | $-57$ | $-153$ | $-169$ |
| Other financial result | 49 | $-21$ | 18 | $-76$ |
| Financial result | $-108$ | $-187$ | $-412$ | $-521$ |
| Income before income taxes | 570 | $-38$ | 2,740 | 2,743 |
| Income taxes | $-227$ | $-171$ | $-517$ | $-793$ |
| Income after taxes | 343 | $-209$ | 2,223 | 1,950 |
| of which attributable to shareholders of BASF SE (net income) | 287 | $-249$ | 2,084 | 1,812 |
| attributable to noncontrolling interests | 56 | 40 | 139 | 138 |
| Basic earnings per share | € | 0.32 | $-0.28$ | 2.33 |
| Diluted earnings per share | € | 0.32 | $-0.28$ | 2.33 |
Balance Sheet
Assets
| Million € | September 30, 2024 | December 31, 2023 | September 30, 2023 |
|---|---|---|---|
| Intangible assets | 11,707 | 12,216 | 12,886 |
| Property, plant and equipment | 25,677 | 24,080 | 23,881 |
| Integral investments accounted for using the equity method | 2,593 | 2,054 | 2,110 |
| Non-integral investments accounted for using the equity method | 4,138 | 4,518 | 4,900 |
| Other financial assets | 1,147 | 1,099 | 1,177 |
| Deferred tax assets | 592 | 617 | 796 |
| Receivables for income taxes | 101 | 80 | 107 |
| Other receivables and miscellaneous assets | 1,687 | 1,258 | 2,307 |
| Noncurrent assets | 47,640 | 45,923 | 48,163 |
| Inventories | 14,258 | 13,876 | 15,076 |
| Accounts receivable, trade | 10,833 | 10,414 | 11,819 |
| Receivables for income taxes | 532 | 717 | 730 |
| Other receivables and miscellaneous assets | 3,490 | 3,787 | 4,299 |
| Marketable securities | 33 | 53 | 226 |
| Cash and cash equivalents | 2,572 | 2,624 | 2,291 |
| Current assets | 31,718 | 31,472 | 34,440 |
| Total assets | 79,359 | 77,395 | 82,603 |
Equity and liabilities
| Million € | September 30, 2024 | December 31, 2023 | September 30, 2023 |
|---|---|---|---|
| Subscribed capital | 1,142 | 1,142 | 1,142 |
| Capital reserves | 3,139 | 3,139 | 3,149 |
| Retained earnings | 31,654 | 32,517 | 34,164 |
| Other comprehensive income | $-1,198$ | $-1,521$ | 410 |
| Equity attributable to shareholders of BASF SE | 34,737 | 35,277 | 38,865 |
| Noncontrolling interests | 1,308 | 1,368 | 1,405 |
| Equity | 36,045 | 36,646 | 40,270 |
| Provisions for pensions and similar obligations | 2,525 | 2,896 | 2,415 |
| Deferred tax liabilities | 885 | 1,140 | 1,384 |
| Tax provisions | 337 | 335 | 325 |
| Other provisions | 1,871 | 1,684 | 1,612 |
| Financial indebtedness | 19,042 | 17,085 | 17,680 |
| Other liabilities | 1,667 | 1,739 | 1,619 |
| Noncurrent liabilities | 26,326 | 24,879 | 25,035 |
| Accounts payable, trade | 5,854 | 6,741 | 5,900 |
| Provisions | 4,013 | 3,214 | 3,994 |
| Tax liabilities | 969 | 801 | 1,005 |
| Financial indebtedness | 3,267 | 2,182 | 3,709 |
| Other liabilities | 2,885 | 2,931 | 2,689 |
| Current liabilities | 16,988 | 15,871 | 17,298 |
| Total equity and liabilities | 79,359 | 77,395 | 82,603 |
Statement of Cash Flows
| Million € | Q3 | January-September | ||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Net income | 287 | $-249$ | 2,084 | 1,812 |
| Depreciation and amortization of property, plant and equipment and intangible assets | 1,027 | 969 | 3,039 | 2,846 |
| Equity-accounted income | $-468$ | 205 | $-818$ | $-172$ |
| Other noncash items | $-80$ | $-71$ | 14 | $-127$ |
| Gains ( $t$ / losses ( + ) from the disposal of noncurrent assets and securities | $-5$ | $-5$ | $-40$ | $-93$ |
| Dividends received from equity-accounted investments | 10 | 19 | 98 | 490 |
| Changes in inventories | 149 | 488 | $-571$ | 906 |
| Changes in accounts receivable, trade | 1,180 | 1,094 | $-587$ | 197 |
| Changes in accounts payable, trade ${ }^{a}$ | $-842$ | $-167$ | $-841$ | $-2,469$ |
| Changes in provisions | 128 | $-179$ | 1,077 | 109 |
| Changes in other operating assets | 672 | 570 | 270 | 1,088 |
| Changes in other operating liabilities and pension provisions | $-5$ | 14 | $-235$ | $-740$ |
| Cash flows from operating activities | 2,052 | 2,686 | 3,489 | 3,848 |
| Payments made for property, plant and equipment and intangible assets | $-1,484$ | $-1,221$ | $-3,907$ | $-3,361$ |
| Payments made for financial assets and securities | $-217$ | $-170$ | $-647$ | $-501$ |
| Payments made for investments in equity instruments | $-79$ | $-15$ | $-618$ | $-50$ |
| Payments made for acquisitions | - | - | $-202$ | - |
| Payments received for divestitures | 6 | $-8$ | 38 | 14 |
| Payments received from the disposal of noncurrent assets and securities | 262 | 189 | 770 | 687 |
| Payments received from the disposal of equity instruments | 1,223 | 0 | 1,267 | 8 |
| Cash flows from investing activities | $-289$ | $-1,225$ | $-3,298$ | $-3,202$ |
| Capital increases/repayments and other equity transactions | $-20$ | - | $-20$ | $-70$ |
| Additions to financial and similar liabilities | 1,029 | 1,378 | 6,511 | 8,837 |
| Repayment of financial and similar liabilities | $-2,322$ | $-3,045$ | $-3,495$ | $-6,481$ |
| Dividends paid | $-79$ | 0 | $-3,204$ | $-3,079$ |
| Cash flows from financing activities | $-1,392$ | $-1,667$ | $-207$ | $-793$ |
| Cash-effective changes in cash and cash equivalents | 372 | $-206$ | $-16$ | $-147$ |
| Changes in cash and cash equivalents from foreign exchange rates and changes in the scope of consolidation | $-29$ | 23 | $-36$ | $-77$ |
| Cash and cash equivalents at the beginning of the period | 2,229 | 2,474 | 2,624 | 2,516 |
| Cash and cash equivalents at the end of the period | 2,572 | 2,291 | 2,572 | 2,291 |
a In order to optimize precious metal stocks, the Group sells precious metals and concurrently enters into agreements to repurchase them at a set price. The cash flows resulting from the sale and repurchase are reported in cash flows from operating activities. Liabilities to repurchase precious metals amounted to $€ 5$ million as of September 30, 2024.
Reconciliation Tables of Various Earnings Indicators Q3 2024
Q3 EBITDA before special items
| Million € | 2024 | 2023 |
|---|---|---|
| EBIT | 250 | 394 |
| - Special items | $-385$ | $-181$ |
| EBIT before special items | 635 | 575 |
| + Depreciation and amortization before special items | 962 | 959 |
| + Impairments and reversals of impairments on property, plant and equipment and intangible assets before special items | 26 | 11 |
| Depreciation, amortization, impairments and reversals of impairments on property, plant and equipment and intangible assets before special items | 987 | 970 |
| EBITDA before special items | 1,622 | 1,545 |
| Sales revenue | 15,739 | 15,735 |
| EBITDA margin before special items | 10.3 | 9.8 |
Q3 EBITDA
| Million € | 2024 | 2023 |
|---|---|---|
| EBIT | 250 | 394 |
| + Depreciation and amortization | 962 | 959 |
| + Impairments and reversals of impairments on property, plant and equipment and intangible assets | 65 | 10 |
| Depreciation, amortization, impairments and reversals of impairments on property, plant and equipment and intangible assets | 1,027 | 969 |
| EBITDA | 1,277 | 1,363 |
Q3 adjusted earnings per share
| Million € | 2024 | 2023 |
|---|---|---|
| Income after taxes | 343 | $-209$ |
| - Special items ${ }^{a}$ | $-5$ | $-472$ |
| + Amortization, impairments and reversals of impairments on intangible assets | 146 | 152 |
| - Amortization, impairments and reversals of impairments on intangible assets contained in special items | - | - |
| - Adjustments to income taxes | 151 | 89 |
| Adjusted income after taxes | 343 | 325 |
| - Adjusted noncontrolling interests | 59 | 43 |
| Adjusted net income | 284 | 282 |
| Weighted average number of outstanding shares in thousands | 892,522 | 892,522 |
| Adjusted earnings per share | 0.32 | 0.32 |
a Includes special items in the financial result of €379 million for the third quarter of 2024 and -€291 million for the third quarter of 2023.
Q3 reconciliation of segment cash flow to free cash flow
| Million € | 2024 | 2023 |
|---|---|---|
| Segment cash flow | 1,188 | 1,916 |
| + Net income from shareholdings | 428 | $-245$ |
| + Financial result | $-108$ | $-187$ |
| + Income taxes ${ }^{a}$ | $-227$ | $-171$ |
| + Cash flows not allocated to segments, changes in other balance sheet items and adjustments of other noncash effects | $-712$ | 152 |
| Free cash flow | 569 | 1,465 |
[^0]
[^0]: a The value corresponds to the amount recognized in the statement of income and does not represent a cash flow.
Selected Key Figures Excluding Precious and Base Metals ${ }^{1}$
BASF Group
| Q3 | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| IFRS figure | Adjusted figure | IFRS figure | Adjusted figure | ||
| Sales | million € | 15,739 | 14,422 | 15,735 | 13,833 |
| Volumes | \% | 4.9 | 6.8 | $-9.4$ | $-8.1$ |
| Prices | \% | $-2.2$ | 0.4 | $-14.4$ | $-13.0$ |
| Currencies | \% | $-2.6$ | $-2.9$ | $-4.2$ | $-4.4$ |
| Portfolio | \% | $-0.1$ | $-0.1$ | $-0.3$ | $-0.4$ |
| EBITDA before special items | million $€$ | 1,622 | 1,622 | 1,545 | 1,545 |
| EBITDA margin before special items | \% | 10.3 | 11.2 | 9.8 | 11.2 |
| January-September | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| IFRS figure | Adjusted figure | IFRS figure | Adjusted figure | ||
| Sales | million $€$ | 49,403 | 45,200 | 53,031 | 46,270 |
| Volumes | \% | 1.8 | 3.6 | $-10.7$ | $-10.0$ |
| Prices | \% | $-6.7$ | $-3.8$ | $-8.9$ | $-6.9$ |
| Currencies | \% | $-1.9$ | $-2.1$ | $-2.2$ | $-2.3$ |
| Portfolio | \% | $-0.1$ | $-0.1$ | $-0.3$ | $-0.3$ |
| EBITDA before special items | million $€$ | 6,291 | 6,291 | 6,354 | 6,354 |
| EBITDA margin before special items | \% | 12.7 | 13.9 | 12.0 | 13.7 |
Surface Technologies
| Q3 | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| IFRS figure | Adjusted figure | IFRS figure | Adjusted figure | ||
| Sales | million $€$ | 3,132 | 1,814 | 3,887 | 1,986 |
| Volumes | \% | $-6.7$ | $-5.1$ | $-11.0$ | $-2.3$ |
| Prices | \% | $-10.6$ | $-0.1$ | $-11.1$ | 6.6 |
| Currencies | \% | $-2.0$ | $-3.2$ | $-4.9$ | $-7.5$ |
| Portfolio | \% | $-0.1$ | $-0.2$ | $-0.1$ | $-0.3$ |
| EBITDA before special items | million $€$ | 341 | 341 | 404 | 404 |
| EBITDA margin before special items | \% | 10.9 | 18.8 | 10.4 | 20.4 |
January-September
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| IFRS figure | Adjusted figure | IFRS figure | Adjusted figure | ||
| Sales | million $€$ | 9,714 | 5,511 | 12,691 | 5,930 |
| Volumes | \% | $-7.4$ | $-3.9$ | $-9.7$ | $-0.4$ |
| Prices | \% | $-14.0$ | 0.3 | $-9.5$ | 9.0 |
| Currencies | \% | $-1.8$ | $-3.0$ | $-2.5$ | $-4.4$ |
| Portfolio | \% | $-0.2$ | $-0.5$ | $-0.1$ | $-0.2$ |
| EBITDA before special items | million $€$ | 1,063 | 1,063 | 1,180 | 1,180 |
| EBITDA margin before special items | \% | 10.9 | 19.3 | 9.3 | 19.9 |
[^0]
[^0]: 1 The IFRS figures correspond to the amounts presented in the Consolidated Financial Statements. The adjusted figures exclude sales from precious and base metal services as well as precious and base metal sales in the Catalysts business.
Annual Results Conference 2024
Feb. 28, 2025
Publication of BASF Report 2024
Mar. 21, 2025
Quarterly Statement Q1 2025 /
Annual Shareholders' Meeting
May 2, 2025
Half-Year Financial Report 2025
Jul. 30, 2025
Quarterly Statement Q3 2025
Oct. 29, 2025
Annual Results Conference 2025
Feb. 27, 2026
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Further information
Published on October 30, 2024
- You can find this and other BASF publications online at basf.com/publications
Forward-looking statements and forecasts
This quarterly statement contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. We do not assume any obligation to update the forward-looking statements contained in this quarterly statement above and beyond the legal requirements.
- Such risk factors include those discussed in Opportunities and Risks on pages 173 to 183 of the BASF Report 2023.
- The BASF Report is available online at basf.com/report.